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Mail is missing all subfolders. On My Mac is greyed out. Sequoia updated.

my mac apple mail is missing all the subfolders. On My Mac is greyed out.

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To fix missing "On My Mac" subfolders after a macOS Sequoia update, restart the Mail app, toggle your account off and on in Mail Settings, create a dummy local folder with the same name to force-refresh the sidebar, or re-index the Mail envelope files in Finder.